High Court Of Delhi
VARDAN COOPERATIVE GROUP HOUSING SOCIETY LTD - Appellant
Versus
DELHI DEVELOPMENT AUTHORITY - Respondent
Decided On : 03/28/2006
Co-operative Group Housing Society - Delhi Co-operative Societies Act, 1972 - 22.11.2004 in WP (C) No. 7372/02 hamdard (Wakf) Laboratories (India) Vs. DDA - The court discussed the delay in construction, composition fee, and penalty for late execution of the lease deed under the Delhi Co-operative Societies Act, 1972 and referred to the decision dated 22.11.2004 in WP (C) No. 7372/02 hamdard (Wakf) Laboratories (India) Vs. DDA.
Fact of the Case:
The petitioner, a Co-operative Group Housing Society, challenges the demands made by DDA for composition fee and penalty for execution of lease deed, citing delay caused by the society and delay in construction of the flats. The petitioner applied for a plot of land, which was allotted by DDA. The possession was handed over with encumbrances, and the society faced delays in obtaining necessary approvals and completing construction.
Finding of the Court:
The court found that the delay in construction and execution of the lease deed was partly attributable to DDA's failure to remove encumbrances and provide necessary clearances. The court also held that the petitioner was liable to pay composition fee for the delay in construction beyond a certain date, as per the policy framed by DDA.
Issues: The issues revolved around the responsibility for the delay in construction and execution of the lease deed, as well as the applicability of composition fee as per the policy.
Ratio Decidendi: The court decided that the delay caused by DDA's failure to remove encumbrances warranted a waiver of the corresponding period. It also determined the liability of the petitioner to pay composition fee based on the policy framed by DDA.
Final Decision: The court directed DDA to revise the demand for composition fee and refund the excess amount received from the petitioner, along with interest.
( 2 ) DUE to subsequent developments during the pendency of the writ petition, an amended writ petition was permitted to be filed to include in it, challenge to a further sum of Rs. 3,07,703. 00 which was paid by the petitioner to the respondent.
( 3 ) PETITIONER applied to DDA for allotment of a plot of land so that it could construct residential flats for its members. Plot No. 64, admeasuring 2. 083 acres at Patparganj was allotted to the petitioner. Physical possession at site was handed over on 29. 3. 1984 but, site was encumbered, in that, three huts existed at the site.
( 4 ) DEMARCATION plan on which factum of possession dated 29. 3. 1984 was recorded mentions as under :-"physical possession of land measuring 2. 083 acres has been handed over to M/s vardan Co-operative Group Housing Society Ltd. with 3 huts to be removed by dda. "
( 5 ) IT is pleaded by the petitioner that DDA took approx 3 years to remove the unauthorized hutments and thereafter only, perpetual lease deed was executed in favour of the petitioner on 10. 7. 1987.
( 6 ) IN the meanwhile, on 18. 9. 1985 M/s Raj Rawal Associates were appointed as Architects. On 18. 9. 1985, the Architect submitted the necessary application to DDA for sanction of the plans as per which the group housing complex could be constructed.
( 7 ) ON 8. 5. 1987, conditional sanction was accorded, on the terms stipulated therein. Sanction was valid for a period of 3 years.
( 8 ) THE petitioner claims to have complied with the terms of the conditions set out in the sanction letter dated 8. 5. 1987 and as a result, on 16. 6. 1987 building plans were released.
( 9 ) SINCE building could not be completed within 3 years, on 31. 5. 1990, the Architect sought extension of the sanction which was granted on 23. 7. 1990. Time was extended upto 15. 6. 1991.
( 10 ) THE complex being still incomplete, on 31. 12. 1991 further extension was sought. DDA agreed to extend the time but demanded a sum of rs. 1,85,457. 80 towards composition fee and Rs. 2,500/- on account of penalty for late execution of the lease deed.
( 11 ) STATING the facts aforesaid and raising a challenge to the two demands aforenoted, present petition was filed by the petitioner projecting the case that though the physical possession of the land measuring 2. 083 acres at plot No. 64, Patparganj, Delhi was given to the petitioner on 29. 03. 84, three hutments having a covered area of about 50-60 sq. yds. and situated in different locations in the plot existed which were to be removed by the respondent. In view of the location of the hutments and those occupying them, it was not possible to raise any construction on the plot till such time those hutments were removed for the reason DDA would not grant a sanction to construct any building till the land was freed of the encumbrance. That at the time when possession was handed over, an assurance was held out by the respondent that the hutments would be removed very soon. The respondent itself insisted that before the lay-out of the petitioner could be approved, one of the documents which the petitioner was required to file was NOC from the Director, Group Housing of the respondent itself that the plot of land was free from any unauthorized construction. That since unauthorized construction in the form of 3 hutments had continued to exist there, the Director, Group Housing of the re
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